Correlation Between Insas Bhd and Lyc Healthcare
Can any of the company-specific risk be diversified away by investing in both Insas Bhd and Lyc Healthcare at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Insas Bhd and Lyc Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insas Bhd and Lyc Healthcare Bhd, you can compare the effects of market volatilities on Insas Bhd and Lyc Healthcare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Insas Bhd with a short position of Lyc Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insas Bhd and Lyc Healthcare.
Diversification Opportunities for Insas Bhd and Lyc Healthcare
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Insas and Lyc is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Insas Bhd and Lyc Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyc Healthcare Bhd and Insas Bhd is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Insas Bhd are associated (or correlated) with Lyc Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyc Healthcare Bhd has no effect on the direction of Insas Bhd i.e., Insas Bhd and Lyc Healthcare go up and down completely randomly.
Pair Corralation between Insas Bhd and Lyc Healthcare
Assuming the 90 days trading horizon Insas Bhd is expected to under-perform the Lyc Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Insas Bhd is 3.6 times less risky than Lyc Healthcare. The stock trades about -0.18 of its potential returns per unit of risk. The Lyc Healthcare Bhd is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8.50 in Lyc Healthcare Bhd on August 30, 2024 and sell it today you would earn a total of 0.50 from holding Lyc Healthcare Bhd or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Insas Bhd vs. Lyc Healthcare Bhd
Performance |
| Timeline |
| Insas Bhd |
| Lyc Healthcare Bhd |
Insas Bhd and Lyc Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insas Bhd and Lyc Healthcare
The main advantage of trading using opposite Insas Bhd and Lyc Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insas Bhd position performs unexpectedly, Lyc Healthcare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lyc Healthcare will offset losses from the drop in Lyc Healthcare's long position.| Insas Bhd vs. Leader Steel Holdings | Insas Bhd vs. Press Metal Bhd | Insas Bhd vs. Shangri La Hotels | Insas Bhd vs. Ho Hup Construction |
| Lyc Healthcare vs. Carlsberg Brewery Malaysia | Lyc Healthcare vs. Kluang Rubber | Lyc Healthcare vs. Daya Materials Bhd | Lyc Healthcare vs. DC HEALTHCARE HOLDINGS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |